In this article, we will look at the 10 Best Strong Buy Healthcare Stocks to Buy Now.
On July 21, Jared Holz, Mizuho health care sector strategist, appeared on CNBC’s ‘The Exchange’ to talk about whether any opportunity plays exist within the healthcare sector, and what pains the sector is facing.
He stated that he is certainly frustrated about the current dynamics in healthcare, admitting that it would be great to cover a sector that outperforms the market once in a while.
The strategist said that when one looks back at healthcare versus the market in the past decade, and even more, the only years the sector has outperformed are when the market was down, and that isn’t a great setup either. A cascading effect of issues exists in large-cap pharma, which Holz considers a significant factor affecting the industry’s performance.
READ ALSO: 11 Best Shipping and Container Stocks to Invest in Now and 11 Best Affordable Stocks Under $5 to Invest in.
He further told CNBC that this is the worst the healthcare sector has ever traded, and nothing even comes close to this much pressure across the board if we go back a couple of decades. Holz named pharma and managed care as the biggest culprits, stating that they are carrying the most weight from a market-cap standpoint.
With these trends in view, let’s look at the best strong buy healthcare stocks to buy now.
A healthcare provider holding an MRI scan of a patient with a traumatic brain injury.
Our Methodology
We used Finviz and Tipranks to make a list of strong buy healthcare stocks and then selected the top 10 with consensus Strong Buy ratings and the highest number of hedge fund holders as of Q1 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was sourced on July 23.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Strong Buy Healthcare Stocks to Buy Now
10. BridgeBio Pharma, Inc. (NASDAQ:BBIO)
Number of Hedge Fund Holders: 59
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is one of the best strong buy healthcare stocks to buy now. On July 14, Leerink Partners analyst Mani Foroohar maintained a Buy rating on BridgeBio Pharma, Inc. (NASDAQ:BBIO) and set a price target of $56.00.
The analyst based the rating on the company’s promising future prospects, stating that it is poised to expand its portfolio beyond the launch of Attruby in ATTR-CM, with three Phase 3 readouts anticipated in the next nine months.
The analyst sees this diversification as an optimistic development as it reduces the company’s reliance on a single asset, potentially bolstering its market position.
Foroohar also identified the BBP-418 program in limb-girdle muscular dystrophy type 2I/R9 (LGMD2I/R9) as a notable opportunity for BridgeBio Pharma, Inc. (NASDAQ:BBIO), as it is a high-margin asset that focuses on a rare disease with considerable unmet needs.
This offers BridgeBio Pharma, Inc. (NASDAQ:BBIO) pricing flexibility and paves the way to accelerated approval, according to the firm.
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is a commercial-stage biopharmaceutical company that discovers, creates, tests, and delivers transformative medicines to treat patients suffering from genetic diseases and cancers.
9. DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Holders: 60
DexCom, Inc. (NASDAQ:DXCM) is one of the best strong buy healthcare stocks to buy now. On July 16, Mizuho analyst Anthony Petrone raised the firm’s price target on DexCom, Inc. (NASDAQ:DXCM) to $100 from $95 while keeping an Outperform rating on the shares.
The rating update came with the firm adjusting price targets in the medical devices and diagnostics sector ahead of Q2 2025 earnings. DexCom, Inc. (NASDAQ:DXCM) is set to report its Q2 results on July 30.
DexCom, Inc. (NASDAQ:DXCM) is a medical device company that manufactures continuous glucose monitoring (CGM) systems to allow real-time health management control. Specializing in diabetes care technology, the company helps improve and simplify diabetes management worldwide.
It offers various medical devices and products, including Dexcom G6, Dexcom G7, Dexcom Stelo, Dexcom Share, Dexcom Real-Time API, and Dexcom ONE.
8. Tenet Healthcare Corporation (NYSE:THC)
Number of Hedge Fund Holders: 62
Tenet Healthcare Corporation (NYSE:THC) is one of the best strong buy healthcare stocks to buy now. On July 23, Raymond James raised the firm’s price target on Tenet Healthcare Corporation (NYSE:THC) to $200 from $185, keeping an Outperform rating on the shares.
The rating update came after Tenet Healthcare Corporation (NYSE:THC) announced its Q2 results on July 22. The analyst told investors in a research note that the company’s Q2 results surpassed expectations, suggesting a strong quarter.
However, James also stated that the stock move after the results was “a bit surprising” and “overdone.”
Tenet Healthcare Corporation (NYSE:THC) reported a 74% increase in adjusted diluted earnings per share to $4.02 in Q2 2025, compared to $2.31 in the same quarter last year. Consolidated adjusted EBITDA for the quarter also rose 18.6% to $1.121 billion compared to Q2 2024.
Management expects the FY 2025 adjusted EBITDA outlook to be in the range of $4.40 billion to $4.54 billion, reflecting a $395 million increase at the midpoint.
Tenet Healthcare Corporation (NYSE:THC) provides healthcare services. The company’s operations are divided into the Hospital Operations and Ambulatory Care segments.
7. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Number of Hedge Fund Holders: 63
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is one of the best strong buy healthcare stocks to buy now. On July 22, Morgan Stanley raised the firm’s price target on Neurocrine Biosciences, Inc. (NASDAQ:NBIX) to $150 from $148, keeping an Overweight rating on the shares.
The firm gave the rating ahead of Neurocrine Biosciences, Inc. (NASDAQ:NBIX) reporting its Q2 2025 results on July 30.
Morgan Stanley expects Neurocrine Biosciences, Inc. (NASDAQ:NBIX) to report $630 million in Ingrezza sales for the quarter, aligning with expectations. It expects Crenessity sales to be around $20 million, slightly below the $23M consensus.
The firm also told investors in its preview that it continues to see “under-appreciated value in 2H and beyond.”
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is a biopharmaceutical company with a focus on neuroscience. It is involved in the research and development, sale, and commercialization of pharmaceuticals that treat neuroendocrine, neurological, and neuropsychiatric disorders.
The company’s product portfolio includes treatments for chorea associated with Huntington’s disease, tardive dyskinesia, classic congenital adrenal hyperplasia (CAH), and endometriosis and uterine fibroids.
6. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Number of Hedge Fund Holders: 64
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the best strong buy healthcare stocks to buy now. In a report released on July 21, Sabina Levi from Leader Capital Markets maintained a Buy rating on Teva Pharmaceutical Industries Limited (NYSE:TEVA) with a price target of ILA9,300.00.
In other news, Teva Pharmaceutical Industries Limited (NYSE:TEVA) announced a strategic partnership with Shanghai Fosun Pharmaceutical (Group) Co., Ltd. on June 16. The partnership aims at the development of investigational TEV-56278, an anti-PD1-IL2 ATTENUKINE therapy.
Teva Pharmaceutical Industries Limited’s (NYSE:TEVA) internally developed ATTENUKINE technology provides a new mechanism of action that potentially offers low toxicity and high efficacy in a range of oncology indications.
The terms of the agreement focus on the acceleration of clinical data generation, granting Fosun Pharma “an exclusive license to develop, manufacture and commercialize TEV-56278 in the Chinese mainland, Hong Kong Special Administrative Region (SAR), Macau SAR and Taiwan region, and select Southeast Asian countries”.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) develops, produces, and sells medicines. Its operations are divided into the US, Europe, and International Markets geographical segments. Each business segment covers the entire product portfolio in that region, including specialty, generics, and over-the-counter (OTC) products.
5. Insmed Incorporated (NASDAQ:INSM)
Number of Hedge Fund Holders: 64
Insmed Incorporated (NASDAQ:INSM) is one of the best strong buy healthcare stocks to buy now. Wells Fargo analyst Tiago Fauth maintained a Buy rating on Insmed Incorporated (NASDAQ:INSM) on July 22, raising the associated price target to $130 from $119.
The analyst based the optimistic rating on the company’s potential, stating that it presents a favorable risk/reward scenario for investors with the upcoming approval and launch of Brenso in bronchiectasis and the anticipated clinical developments for the rest of the year.
Fauth also stated that the market opportunity is significant despite the current low expectations, especially with the CRSsNP patient population, which may potentially result in peak sales in the $3 billion range.
The firm added that management has an optimistic outlook on the clinical data, which appears to surpass the minimum required efficacy, further supporting the optimistic rating on Insmed Incorporated (NASDAQ:INSM).
Insmed Incorporated (NASDAQ:INSM) is a global biopharmaceutical company that develops and commercializes therapies for patients with rare diseases. The company focuses on the Brensocatib and Treprostinil Palmitil Inhalation Powder (TPIP) pipeline.
4. Natera, Inc. (NASDAQ:NTRA)
Number of Hedge Fund Holders: 67
Natera, Inc. (NASDAQ:NTRA) is one of the best strong buy healthcare stocks to buy now. On June 30, RBC Capital analyst Conor McNamara maintained a Buy rating on Natera, Inc. (NASDAQ:NTRA) and set a price target of $251.00.
Natera, Inc. (NASDAQ:NTRA) reported a 36.5% increase in total revenue in fiscal Q1 2025 to $501.8 million, compared to $367.7 million in Q1 2024. Management attributed this growth to a 37.1% increase in product revenues, which reached $500.0 million in Q1 2025 compared to $364.7 million in the same quarter last year.
Growth in product revenues was primarily driven by a rise in volume and average selling price improvements, along with cash receipts collected during Q1 in excess of initial revenue estimates for tests delivered in previous quarters.
Natera, Inc. (NASDAQ:NTRA) is a diagnostics company that develops and commercializes molecular testing services, applying its technological services in oncology, women’s health, and organ health.
The company provides various diagnostic tests, including Panorama non-invasive prenatal test (NIPT), Vistara, Horizon carrier screening (HCS), Spectrum pre-implantation genetic screening and Spectrum pre-implantation genetic diagnosis, Anora products of conception (POC), and non-invasive paternity testing (PAT).
3. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 101
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the best strong buy healthcare stocks to buy now. On July 23, Evercore ISI raised the firm’s price target on Thermo Fisher Scientific Inc. (NYSE:TMO) to $525 from $480, keeping an Outperform rating on the shares.
The firm told investors in a research note that while some anticipated a beat after Danaher’s print, concerns existed regarding whether FY2026 estimates were too high.
It further stated that Thermo Fisher Scientific Inc. (NYSE:TMO) adopted the right approach by giving color on FY26/FY27, and added that it expects FY 2025 to have some upside, potentially from the US and China as trends appear to be coming inline to better.
Thermo Fisher Scientific Inc. (NYSE:TMO) provides analytical instruments, reagents, equipment, software, and other services for analysis, research, diagnostics, and discovery. It operates through the Analytical Instruments, Life Sciences Solutions, Laboratory Products and Services, and Specialty Diagnostics segments.
2. Boston Scientific Corporation (NYSE:BSX)
Number of Hedge Fund Holders: 108
Boston Scientific Corporation (NYSE:BSX) is one of the best strong buy healthcare stocks to buy now. On July 23, TD Cowen analyst Josh Jennings maintained a Buy rating on Boston Scientific Corporation (NYSE:BSX) and set a price target of $115.00, supporting the rating with the company’s positive outlook and solid financial performance.
The analyst told investors that Boston Scientific Corporation’s (NYSE:BSX) Q2 2025 sales and EPS exceeded market expectations. EPS for the quarter was $0.75 and sales reached $5.06 billion, surpassing estimates of $0.73 and $4.89 billion, respectively. Jennings attributed this notable performance to a solid organic sales growth of 17.4%, considerably higher than the company’s guidance of 13-15%.
The firm further reasoned that Boston Scientific Corporation (NYSE:BSX) raised its guidance for 2025, and now expects EPS in the range of $2.95-$2.99 and organic sales growth of 14-15%.
Boston Scientific Corporation (NYSE:BSX) manufactures, develops, and markets medical devices used in interventional medical procedures. Its operations are divided into Cardiovascular and MedSurg segments.
The Cardiovascular segment covers Cardiology and Peripheral Interventions, while the MedSurg segment comprises Urology, Endoscopy, and Neuromodulation.
1. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 117
Danaher Corporation (NYSE:DHR) is one of the best strong buy healthcare stocks to buy now. On July 23, UBS lowered the firm’s price target on Danaher Corporation (NYSE:DHR) to $225 from $240, while maintaining a Buy rating on the shares.
The firm told investors in a research note that while Danaher Corporation (NYSE:DHR) reported Q2 2025 results in line with expectations, its Q3 2025 guidance was slightly below estimates, resulting in a price target downgrade.
Danaher Corporation (NYSE:DHR) reported Q2 2025 earnings on July 22, with revenues rising 3.5% year-over-year to $5.9 billion and non-GAAP core revenue increasing 1.5% year-over-year. Net earnings for the quarter reached $555 million, or $0.77 per diluted common share.
For Q3 2025, Danaher Corporation (NYSE:DHR) expects non-GAAP core revenue to grow in the low single digits year-over-year.
Danaher Corporation (NYSE:DHR) designs, manufactures, and markets professional, medical, industrial, and commercial products and services, making it a significant diagnostics stock. It operates through Diagnostics, Biotechnology, Life Sciences, and Environmental and Applied Solutions.
Its Biotechnology segment offers a range of equipment and consumables for biological medicines. In contrast, the Life Diagnostics segment offers clinical instruments, devices, consumables, and other services for diagnosing and treating diseases.
While we acknowledge the potential of DHR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DHR and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
